ACC00152: MicroNet Technologies Financial Alternatives Analysis

This memo evaluates three financial alternatives for MicroNet Technologies (MNT) regarding a new technology for driverless sports cars. The options include in-house manufacturing, licensing to another company, and selling the patent rights. The analysis uses Net Present Value (NPV) and Profitability Index to assess each option. Option A (in-house manufacturing) shows a minimal profit with a profitability index of 1.02. Option B (licensing) yields the highest figures, with a profitability index of 2.68 and a significant NPV. Option C (patent rights sale) provides a positive profitability index but is less attractive than Option B. The memo recommends Option B as the most financially beneficial, considering both NPV and potential additional income sources, while also suggesting further analysis, and discussing factors to consider prior to making a final decision.